Not exactly pure arbitrage but does any one use trading strategies where a particular currency has a high correlation to another assest class.
- #2
- Last Post: Edited 12:17pm Feb 19, 2007 12:09pm | Edited 12:17pm
I've been doing gold and silver swaps for about a year now- but only using physical metals. It makes a pretty decent profit. The ratios interchange on a pretty infrequent basis though.
I've considered using the same strategy trading online but my current broker doesn't support gold and silver transactions. It would be even more profitable though, as transaction costs (shipping etc.) would be eliminated, however, because the ratios take awhile to turn, it would require buying and holding positions for between 3 and 6 months at a time and if I'm not mistaken swaps [interest on the trades] might get hefty.
In all though, in my opinion a person can't go wrong buying and holding precious metals right now- with gold and silver swaps it becomes even more lucrative.
I've considered using the same strategy trading online but my current broker doesn't support gold and silver transactions. It would be even more profitable though, as transaction costs (shipping etc.) would be eliminated, however, because the ratios take awhile to turn, it would require buying and holding positions for between 3 and 6 months at a time and if I'm not mistaken swaps [interest on the trades] might get hefty.
In all though, in my opinion a person can't go wrong buying and holding precious metals right now- with gold and silver swaps it becomes even more lucrative.
Is your SL my TP?